Landlords - how do you bill for utilities in HMO's?

BritRael

I own a house (2 up/2 down terrace) which is split into two s/c flats, which I am considering renting out. The c/h and hot water are run from a gas combi-boiler.

Because it would be an HMO, I assume that I cannot put tenants names on the bills, so I would need to calculate them. Would I simply over-estimate what previous bills have been (split into two) and give a refund at the end, or is there a better way?

My concern is this: if I add an all-inclusive charge, this might give the tenants carte blanche to over-use everything. I don't want to make a penny out of over-charging, but I certainly do not want to lose any money either. For me, 'you use it, you pay fot it'. The thing is, how do I achieve this?

TIA for any comments/ideas/advice.

KimYeovil

If you have not paid for a second meter then I would hardly call the flats self-contained. That will lower the amount of rent the tenants will pay (because of this very complication).

In house-shares it is down to the tenants to fight and split the bills. It is normally shared equally or split according to floor space. But it is their responsibility - nothing to do with you. Let them take the bills in their names.

Why do you want the unnecessary hassle of being responsible for the bills?

BritRael

KimYeovil wrote: »

If you have not paid for a second meter then I would hardly call the flats self-contained. That will lower the amount of rent the tenants will pay (because of this very complication)...

Sounds like a good idea. Any idea how much that would cost?

KimYeovil wrote: »

...Why do you want the unnecessary hassle of being responsible for the bills?

I don't. That's why I'm asking for advice.

glider3560

BritRael wrote: »

Sounds like a good idea. Any idea how much that would cost?

All depends on how everything is currently wired up. You would need to contact your local electricity distributor (not supplier) to see about adding a new connection.

BritRael

KimYeovil wrote: »

...In house-shares it is down to the tenants to fight and split the bills. It is normally shared equally or split according to floor space. But it is their responsibility - nothing to do with you. Let them take the bills in their names....

As I said earlier, these are two flats. It would not be a 'house share'. My term of 's/c' means that they both have cooking/washing facilities, and their own front door; the upstairs via a locked door at the bottom of the stairs. However, the gas and electric serves the whole property, so would in effect be shared. Hence, my problem.

kippen_noedel

I didn't reply to this originally because I have no HMO properties, is this actually registered as an HMO or are they as you seem to now be saying 2 separate flats ?

Are they registered as 2 properties for council tax ?

If so you need to bite the bullet and pay to get the utility supplies split for each property.

Fire_Fox

If you decide not to pay for the extra meter (and I agree, you should) be aware that it isn't a case of whether you want to make a profit, you simply cannot legally resell energy at a higher price. I rather suspect this means you will have to bill in arrears with all the risks of disputes and moonlight flits.

If you haven't already, may I suggest you join a landlord's association? Forgive me if I am wrong but calling self contained flats a HMO suggests you are an amateur landlord and a professional tenant will see you coming a mile off. If you don't already have it, you will need consent of the lender to let, landlord's insurance, gas and electricity safety certificates, to register for income tax, and to decide which scheme you are going to lodge the damage deposits in.

Premier_2

BritRael wrote: »

...Because it would be an HMO, I assume that I cannot put tenants names on the bills, so I would need to calculate them. ...

Being an HMO is not a reason in itself to prevent the tenants being responsible for the utilities. But how you intend to let the property may make that difficult.

Nothing to stop you installing your own sub meters if you want.

Personally, I agree with others and suggest as you want to let property as 2 s/c flats, you'd be best getting 2 metered supplies (most tenants would prefer this)

Speak to your local housing officer for more details on HMO and whether you would need to register the property as such.

BritRael

kippen_noedel wrote: »

I didn't reply to this originally because I have no HMO properties, is this actually registered as an HMO or are they as you seem to now be saying 2 separate flats ?..

As I said on the OP, it is a 2 up/2 down terrace, split into 2 separate flats.

kippen_noedel wrote: »

...Are they registered as 2 properties for council tax ?

Yes

BritRael

Fire_Fox wrote: »

..Forgive me if I am wrong but calling self contained flats a HMO suggests you are an amateur landlord and a professional tenant will see you coming a mile off.

lol - no offence taken. Yes, I suppose (as I have not been one before) I would be an 'amateur landlord' Seriously though, I have no intention of becoming a (direct) landlord because of the horror stories that I have read on here.
I only used the term 'HMO' because it is a house, and would have multiple occupants, therefore it seemed right when I wrote it

Fire_Fox wrote: »

...If you don't already have it, you will need consent of the lender to let, landlord's insurance, gas and electricity safety certificates, to register for income tax, and to decide which scheme you are going to lodge the damage deposits in.

No problem there as I have no lender. I bought it cash nearly 10 years ago (before BTL really took off) with a view to buying a few and becoming a landlord as there appeared to be money to be made. As I am overseas most of the time I never seemed to find the time to take it any further. Probably missed the boat now huh?

As for the other points, I contacted the local council and also a letting agent when I was back a few months ago with a view to possibly using either, and yes, I would get it all in place. The council wanted it (in its current layout) as one house because of the utilities, but with separate meters 2 flats would be acceptable. The agent would take it as 2 flats now, but I was not convinced about how they would handle the bills.

Joyful

I would not be interested in a self contained flat where I had to have my heating possibly controlled by the other flat. I am assuming the boiler and timer will be in one of the properties. There is already a posting on one of the boards where the landlord lives above the tennant and decides when the heating comes on.